Debt Forgiveness – Tax and Accounting Implications

Abstract

The present study seeks to present accounting and tax elements on the effects the forgiveness of tax debts brings to taxpayers and also analyze the use of accounting standards as arguments in recent precedents of Carf and the Judiciary, considering that adherence to the programs represents the derecognition of a liability, implying taxable income, given that there is an increase in equity, regardless of the measurement of the tax liability and the nature of its eventual reduction.